ALBERT EDWARDS: We're On The Cliff Of Deflation And Markets Don't Seem To Carehttp://www.businessinsider.com/albert-edwards-cliff-of-deflation-2014-1/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Fri, 18 Aug 2017 01:25:36 -0400Steven Perlberghttp://www.businessinsider.com/c/52d8ab256bb3f74f6048ebferon61Thu, 16 Jan 2014 23:01:41 -0500http://www.businessinsider.com/c/52d8ab256bb3f74f6048ebfe
This guy still has clients?http://www.businessinsider.com/c/52d8989beab8ea494b48ebfedknolaThu, 16 Jan 2014 21:42:35 -0500http://www.businessinsider.com/c/52d8989beab8ea494b48ebfe
Exactly, when deflation comes it will hurt the poor so hard, that those working 2 jobs will have to get a third job and those with 3 will have to find another job. The 1% will sit back and wait it out, they have been sitting on their money not spending a dime for the past 5 years.
The banks haven't been lending, they have been paying all those fines for breaking the law, but no loans, inflation will occur and it's going to be ugly.http://www.businessinsider.com/c/52d86ff8ecad04ae5c48ebfcjohn1066Thu, 16 Jan 2014 18:49:12 -0500http://www.businessinsider.com/c/52d86ff8ecad04ae5c48ebfc
"Income inequality is just a symptom that will ultimately self-correct."
Yes, it's called the French method and that is a really bad thing. But I don't make the rules. See you assume people will continue to play the game when the ultra rich rig it to keep themselves and their children in power.
They do not continue to play that game. They change the game and that's when it gets very ugly.http://www.businessinsider.com/c/52d868caecad04e94d48ec02dow30000Thu, 16 Jan 2014 18:18:34 -0500http://www.businessinsider.com/c/52d868caecad04e94d48ec02
Income inequality is just a symptom that will ultimately self-correct. QE increases asset prices...higher asset prices create a wealth effect that encourages higher income individuals to spend money. This economic benefits of this spending will eventually trickle-down to those in the lower income tiers. We just need to be patient and let QE work. Right now you are only seeing part of the picture...just wait until the economy begins to accelerate later this year!http://www.businessinsider.com/c/52d8416fecad04ad769c1520john1066Thu, 16 Jan 2014 15:30:39 -0500http://www.businessinsider.com/c/52d8416fecad04ad769c1520
You are missing some point. First deflation hits jobs. It removes them and lower wages faster then deflation. So one gets a much higher unemployment rate.
Know what causes inflation in some sectors? Bubbles. It's investment money chasing other investment money for a return with little underlying demand. That was the housing bubble and the high tech bubble.
So no deflation is not good in fact it can cause countries to fall. But you are ignoring that.
The real issue is income inequity. As more and more people get less and less of the economic gains they generate less demand in the economy. As more and more wealth flows into the hands of the few that gets us bubbles.
That's the reality. And that's what needs to be fixed. Until that happens no amount of deflation will fix anything. In fact deflation will make the problems worse. Much worse.http://www.businessinsider.com/c/52d8319c6da81102523574b3krypticThu, 16 Jan 2014 14:23:08 -0500http://www.businessinsider.com/c/52d8319c6da81102523574b3
Deflation only exists in the wages of ordinary Americans.http://www.businessinsider.com/c/52d82e666da81187473574b3Markets dataThu, 16 Jan 2014 14:09:26 -0500http://www.businessinsider.com/c/52d82e666da81187473574b3
Deflation is natural and normal in any economic environment. It's when goods and services rebalanced to reflect the structural economy.
When deflation is moated, you have price increases in the wrong places.
Healthcare is moated from deflation because everyone needs it and its the last thing anyone goes without. Everyone is guaranteed 100% debt and charity by hospital rooms. The absence of deflationary pressures in healthcare is why it is so expensive and continually drives the inflation rate in the US.
What happens? distortions happen. Some services get extra money when they shouldn't **COUGH BANKS... **COUGH
Who gets hurt?
Currently labor is getting hurt. Labor has deflationary pressures due to outsourcing and technology. Across the board inflation may help that slightly, but most of the inflation will go to moated sectors. Basically everything is getting more expensive while wages remain stagnant.